Will I be able to service a loan?

To all the brokers out there that can help me.

My partner and I purchased an OTP apartment 2/2/1 in Sydney for 600k~. The 10% deposit has been paid and we have an additional 85k in the bank. Our combine income before tax is just under 100k and we're due to settle in the first quarter next year.

Would we be able to borrow 480k? Should we go for a big4 or smaller lenders?

 

Impossible to say with the information provided.

When is settlement?

 

Is it an investment property, or a principal place of residence ?
Got any other debts, or credit cards ?
All affects the outcome ....

 

PPOR to live in. Got 1 credit card with a 3.8k limit. Also combined HECS debt around 60k~. Settlement seems to be March but could be delayed.

 

There are many factors which will determine the answers to your questions. Perhaps questions you should have asked before signing the contract of an OTP property.

Moving forward, best to get in touch with a broker to find out what's possible for you.

There are some excellent brokers on this forum. Check out the business services directory.

 

Still not enough info.

Whatever you check now won't apply next year either. You should start speaking to brokers in around Jan

 

I highly recommend you speak with a broker for specific advice - whether to go for big 4 or smaller lender will depend on a lot on planning information that is not available from your post.

Do it soon, too - if servicing is going to be an issue you'll want to know asap so you have time to find a solution.

 

Okay thanks. Will seek a broker around Dec/Jan.

 

Living expenses, etc will also come into play.

Best bet is to continue to save like crazy between now and settlement.

Hit up a decent broker to run the numbers - and avoid submitting multiple applications.

Cheers

Jamie

 

If they've paid 60k deposit, they should try get a ballpark of what is required now to try and find some way to be in the best possible situation to borrow to avoid losing their 60 grand (which was in the news not so long ago to someone else).

 

Jess and Anthony make good points. Get your serviceability checked now so if there is a problem you can start planning ahead. But keep in mind things are constantly changing so what works now may not work in the future and vice versa

 

I agree with Anthony.

See a broker now. If there is a problem with your serviceability or any other part of the application, it can be identified and you've got time to do something about it.

 

And keep saving. You have done well to put down 60k with 85k savings which means at this stage no LMI would be payable.

That said you have purchased an OTP in Sydney and come completion who knows what the valuer will value it at. I would personally be planning for a 550k which means you will need circa 170k in to avoid LMI.

 

You don't want to be flying blind with such an important life step (purchasing a property worth several hundred thousand dollars).

Form a good relationship with a good investment focused broker now and they will be able to give you an understanding of where you currently are and where you need to be to support the purchase come settlement date. They'll also be able to identify the best time to start applying for finance and handle the process - no downsides for you.

As others have noted - build up as much cash as you can in the meantime so you have some backup funds should you need to chip in extra to get this over the line should any adverse issues come up (valuation issues etc)